Zomato parent Eternal swaps AdOnMo stake for 5.4% of MyGate in $18.7M deal
What's the deal? Eternal, the parent of Zomato and Blinkit, will acquire a 5.4% fully diluted stake in MyGate through a share swap valued at about US$21.2M. No cash changes hands: Eternal transfers its entire holding in advertising technology company AdOnMo and receives MyGate preference and equity shares in return.
Why now? The swap precedes a proposed all-stock merger of AdOnMo into MyGate. Once that completes, Eternal's stake dilutes to about 4.4%, AdOnMo ceases to exist as a separate company, and its co-founders Sandeep Bommireddi and Sravanth Gajula join MyGate's board.
What's the endgame? The merger unifies MyGate's reach across 6 million households in 30,000 gated communities with AdOnMo's network of over 55,000 digital displays in 27 cities. The aim is to extend advertising beyond the MyGate app into housing societies, while giving AdOnMo access to those communities.
MyGate, operated by Vivish Technologies, reported turnover of US$31.1M in FY26, up from US$23.2M in FY25. The combined business is reported to target about US$67.9M in annual revenue and a valuation near US$475.3M.
By the numbers: The shares Eternal receives are valued about US$5.98M above its US$15.2M AdOnMo investment from January 2022 — an unrealised gain, since Eternal is not exiting for cash. The transaction is expected to close on or before December 5, 2026, subject to definitive agreements.
"Coming together with AdOnMo gives us a powerful new way to do that," said Abhishek Kumar, co-founder and chief executive officer of MyGate, referring to resident communication.
The signal: For Eternal, the deal is an incremental portfolio move, not a shift in its core food-delivery and quick-commerce strategy. It swaps a fading ad-tech bet for a minority stake in a consumer platform pushing deeper into India's residential communities.
Read more: india.entrepreneur.com
Image credit: Generated with Gemini
